Image Source: CBS News
Starbucks is leaving Russia after 15 years, becoming the latest Western company to leave the nation following the Ukraine conflict.
After suspending trading in March, the coffee chain will now exit the Russian market totally.
It said it will continue to pay roughly 2,000 employees in the country for the next six months.
Starbucks, like McDonald’s and Renault, has decided to leave the country forever.
The United States and its Western allies retaliated against Russia by imposing broad economic sanctions aimed at economically isolating it and cutting it off from the global banking system. Western corporations find it difficult to operate there due of the laws.
Starbucks first opened its doors in Russia in 2007 and has since grown to 130 licensed locations.
In March, the business halted supplies to Russia. It said it has “taken the decision to depart the market and no longer have a brand presence.”
It did not reveal financial details about the move, but said it will help its employees “transition to new opportunities outside of Starbucks.”
Starbucks announced that the locations would close.
The Starbucks outlets are owned and operated by the Kuwait-based Alshaya Group, which stated the decision to depart was a “Starbucks announcement” and referred inquiries to the coffee chain. It didn’t specify whether it planned to sell the stores or reopen them under a new name.
McDonald’s said last week that it was selling its almost 850 stores in Russia to current licensee Alexander Govor, a Russian businessman who plans to rebrand the shops.
Renault, a French carmaker, said earlier this month that its operations had been nationalized and would be handled by Russian government organizations, who stated they wanted to restart production under a Soviet-era automobile brand.
Last month, the mayor of Moscow estimated that approximately 200,000 people in the city face job losses as Western corporations leave the nation.
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